Florida Broker Practice Exam

What happens if a broker and sales associate conspire to establish a standard commission rate?

1. It is permissible under state law

2. It is considered a violation of anti-trust laws

3. It can lead to a re-structuring of fees

4. It is subject to approval from regulatory bodies

The correct answer is: It is considered a violation of anti-trust laws

When a broker and sales associate conspire to establish a standard commission rate, it is considered a violation of anti-trust laws. Anti-trust laws are designed to promote competition and protect consumers from unfair business practices, including price-fixing. This illegal agreement to set a standard commission rate can harm the market by eliminating competition, potentially leading to higher prices for consumers. In the real estate industry, brokers and sales associates are allowed to set their own commission rates independently. However, when individuals in these positions collude to create a uniform rate, it restricts free market competition, which is against the principles of anti-trust legislation. Therefore, such actions can result in severe penalties, including fines and other legal consequences, aimed at preserving competitive practices within the industry.